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Ryanairs Business Model 2013 Edition

September 2013

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Disclaimer before reading:

Air Scoop made its best to achieve top-quality, reliable information while keeping an objective vision of the evolution of Ryanair, the biggest low-cost carrier up-to-date. However, Air Scoop cannot guarantee, and assumes no legal liability or responsibility for, the accuracy, currency or completeness of the information. Therefore, before relying on this information, it is advised you take into account professional advice. The views expressed in the reports are the views of the author and shall in no way be regarded as the ultimate truth.

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Why publish this report:

In 2011, Air Scoop published a report on Ryanairs business model on the base of a precedent publication, released in 2010. At the origin of this initiative, there was an ambition: to deliver to the experts of the industry, the journalists and the public a precise detailed analysis of the most successful no-frill airline in Europe. Two years later, Air Scoop sought to reiterate the experience.

However, two years is a long period for such a dynamic sector as the aviation industry. The face of the airline industry the face of Ryanair in particular has changed. Therefore, the 2013 edition of the report shall be as different as the 2011 report was from the 2010s. This new release aspires to be more dynamic, more interactive and more visual-friendly without abandoning its comprehensive aspect which made our work so successful.

That being said, the 2013 2014 period will definitely be a pivotal year for Ryanair. A crisis year, in the Chinese sense of the term: a mix of risks and opportunities. For instance, various events numerous lawsuits that might set precedents, conclusions of European Commission on the state aids, Spains safety recommendations shall considerably influence, for the worse or the better, the company policy in the years to come. Furthermore, for the first time in a decade, the airline has issued profit warnings on its net-profit forecast, whereas a change of stance made the airline anxious to maintain a certain control on the bad press that had damaged its reputation so far. In the midst of this changing year, the three pillars on which Ryanair stands (legal strategy, financial optimization, communication), albeit composing a relevant model, might fall victims to the winds of change that have been blowing all over Europe. The upcoming era shall usher European only ultra-low-cost company into a new step of its existence.

This report will follow two main axes. First, it shall analyse the successful business model of the company which conceptually relies on two steps: bring together the elements of success (obtain the lowest fares, lure a maximum of passengers) and maximise its revenue (make profit out of the flux and secure the incomes thanks to advanced tax optimization). Then, in a second part, we shall develop the idea that Ryanair has entered an era of crisis by demonstrating how Ryanairs sacred triptych is endangered and by reviewing the threats that menace the model: an overall rise of costs, a nefarious social climate and a political upheaval at the European scale.

Flying ahead of every other analysis attempted before, the 2013 Air Scoop will offer a clear understanding of Ryanairs business model and future.

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TABLE OF CONTENTS
Why publish this report: ..................................................................................................... 3 TABLE OF CONTENTS........................................................................................................... 4

PART I: Ryanair, a two-step recipe to profit ......................................................................... 5 A Step One: Bring Together the Elements of Success ......................................................... 6 1- Airports of choice: Ryanair flies high on subsidies and tax discounts ................................ 6 2- Ryanairs maniacal focus on being the lowest cost producer ......................................... 9 3- Sending a maximum of passengers in the air ................................................................... 14 B To Maximise and Protect Its Revenues......................................................................... 15 1) Ancillary Revenues: The real cost of flying with Ryanair .................................................. 15 2) Tax optimization: Ryanair Holding, a jewel of fiscal engineering? ................................... 19 3) A proactive and offensive legal attitude ........................................................................... 22

PART II: Ryanair business model in crisis ............................................................................ 25 A- Ryanairs sacred triptych flies on a wing and a prayer .................................................... 26 1- Ryanairs financial structure shakes on its feet ................................................................ 26 2- Ryanairs communication: Be talked about, no matter how, a short-lived mantra ...... 28 3- Ryanair under legal action: these lawsuits that threaten the company........................... 30 B- Social, cost rise and safety: the pending threats on Ryanairs business model................. 34 1- Social issues: Ryanairs Achilles heel................................................................................ 34 2- The inflexible rise of costs: Ryanairs three biggest threats ............................................. 36 3- Safety at Ryanair: a thorn in the foot?.............................................................................. 37 Towards a new era: the new face of the aviation industry ................................................. 40 References ....................................................................................................................... 42

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PART I: Ryanair, a twostep recipe to profit

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A Step One: Bring Together the Elements of Success

How did Ryanair achieve one of the lowest unit cost in the industry? Air Scoop unveils the secrets of a fourfold strategy of cost control:

1- Airports of choice: Ryanair flies high on subsidies and tax discounts

At the very beginning of Ryanairs success, there is a careful, deeply-calculated picking of the airports. Ryanair flew to about 180 airports in 2012 and most of them are secondary airports despite the confusing names of the destinations. Because of this reputation of Flying from nowhere to nowhere1, some rival airlines didnt hesitate ridiculing the misleading names of Ryanair destinations2. However, theres little to laugh about as choosing secondary airports over larger hubs allowed Ryanair to enjoy a significant competitive edge as well see below.
Distance between main cities and landing

State Aids: how Ryanair managed to gain support from airports

Numerous scandals regarding marketing contracts signed between Ryanair and airports flared all across Europe (France3, Spain4, Germany5, Malta6, Belgium7, Italy8, Portugal9). These arrangements, viewed as disguised State aids by some, shed a new light on Ryanairs subsides policy with some competitors accused Ryanair of receiving about 600 millions of euros in subsidies.

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Actually, the question is still debated upon and the investigations of the European Commission Competition watchdog will determine whether or not Ryanairs aids were illegal the truthfulness of these allegations will be examined later on in the report. Overview of Ryanairs financial support in French airports, from 2011 to 2013:

The airlines claims didnt prevent the media from implying the European State aid investigations had been partially spurred by those controversial arrangements made by Ryanair10, an arguable statement as 19 investigations out of 23 targeted the Irish carrier. As a matter of fact, Ryanair is also believed to draw a substantial financial income from subsidies (which might pose a threat to its business model regarding evolving EU State aid guidelines11). In Spain, for instance, the Irish LCC received more than 80millions in subsidies in 2010 to fly to regional airports in the country12. This tremendous advantage was denounced by airlines as unfair trading majors or LCCs alike13.

However controversial the mechanism, it can be considered the base of Ryanairs low fares. The airline demands support in compensation for the passengers it brings, and doesnt hesitate to desert an airport if the tax rises or the State aids are reduced. Therefore, both passengers and airports happen to pay the airline for flying from point A to point B.

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A detailed look into European State Aids:

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Low airport taxes: a vital prerequisite

Air transport is an expensive activity, and not only because it is fuel-hungry: it also demands that airlines settle series of taxes and services to the airports they fly to. These payments, originally designed to cover the operating costs of the airports, allow the infrastructures to serve as a profitable tool of development for the region. But some low-cost carriers, Ryanair in particular, managed to turn the traditional model where airports provide services and charge airlines for them into a model where airports build a business plan to attract low-cost airlines and offer conditions to retain them14. Among other things, low airport taxes have always been a prerequisite for Ryanair15. So much the airline has repeatedly threatened to leave airports if the taxes were to increase. Ryanair effectively slashed routes in Spain16 after the government decided to raise taxes. The carrier also weighs a huge pressure on Belgium17, Lithuania and Greece18 in order to maintain their taxes low, at the expense of the airports operating welfare. Thanks to these discount measures, the carrier can lower the fares of its tickets and radically reduce the operating costs of its flights to the point it becomes more competitive than any other airlines.

2- Ryanairs maniacal focus on being the lowest cost producer19

One word which has insufficiently been associated with Ryanairs business model is disciplined. Arguably, the companys profits soared because it is run like a clock. Besides, Mr OLeary also reminds they are religiously low-fares20. This devotion has a drawback, all the more so since planes and human resources are treated alike. Although commercially successful, this accountants vision has greatly damaged the airlines reputation this year.

Human revenues: how to maintain cheap labour costs and make money?
Ryanairs labour cost and productivity is one of its main assets21 however controversial the airlines working conditions may be. All over Europe (Norway22, the U.K.23, France24, Sweden) affairs have sparked involving staff members, cabin crews and pilots alike. Among other things, contracting with the company was repeatedly assimilated to slave contracts25, although a more critical analysis allows a better understanding of the processes. In actual fact, at Ryanair, the contracts can be broken down in two types: cabin crews contract and pilots. Cabin crew: Ryanair managed to achieve incredible cost control by forming the perfect alliance of flexibility and productivity. Although Ryanairs working conditions should be changed in 2020 by new EU regulation, it is good to have a look at the reality of working at Ryanair as a flight attendant.

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A flight attendant contract a glance:

Ryanair has a high turnover rate which is partially due to the possibility to dismiss a flight attendant during the one-year trial or without properly paid 3-month notice26. Cabin crew are recruited by a contractor which also facilitates flexibility27. Finally, Ryanairs organization allows it to legally close a base and have the entire crew move to another in an instant, whatever the objections28. As for the cost control, Ryanair seems to resort to advantageous Zero-Hours Contracts (see the graphic here29) for all of its cabin crew. Under this specific type of contracts, employees do not have a set amount of hours per week. As a consequence, employees are only paid for the hours they are physically at work. The consequences are manifold: Ryanair cabin crew are only paid when they are actually in the air, that is to say when the aircraft touches the ground, they arent paid anymore. Additionally, taking a sick leave results in a No Show, which means they arent paid either. Finally, cabin crew have to pay for their uniforms, their formation, transport fees and other workrelated services while ensuring they maintain a sell ratio of their products in-flights. These specific features contribute to the unparalleled productivity of the Ryanairs staff. However, the terrible working conditions and the low wages are increasingly driving cabin crew towards contestation which we shall explore later. Pilots: Pilots situation is usually seen as better than those of cabin crews. Nevertheless, they have been the ones to lash out the company, even going as far as building up a European anonymous association functioning like a union: the Ryanair Pilot Group (RPG) which is thoroughly detailed later in this report. For now, let us consider how Ryanair pilots are recruited and what their working conditions are.

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A Ryanair pilot contract at glance:

About 75% of Ryanair pilots are contractors, a status which places them in a situation where they provide a service to the airline, by the means of a contract signed with Brookfield Aviation Ltd. The specificity of a Brookfield contract is noteworthy as it allows Ryanair to dismiss most of its duties as an employer30 (that is to say social charges but also uniforms, licenses, etc.). Besides, pilot contractors are remunerated through a complex system involving private accountants, imposed by Brookfield Aviation31. These arrangements were compared to mercenary contracts by the flight safety expert David Learmount who believed it could potentially jeopardize safety32: Ryanair are pushing their luck on human factors when they employ pilots like a warlord employs mercenaries. There is the worry that if they are self-employed that might place additional pressures on them to work even if, for any number of reasons, they might not feel entirely fit to do so.33

Planes: how to turn expensive commodity into a bargain

Looking back in the past, the time when Ryanair would operate its sole route between Waterford and London-Gatwick is water under the bridge. Nowadays, the airline flies to 187 destinations and has a fleet of 305 planes34. In actual fact, the sky-rocket rise of Ryanair was partially fuelled by the rapid increase of its fleet as well as the optimum usage it made of it.

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Buying plane the Ryanair way: The contract signed with Boeing in 2002 was a starting point in Ryanairs mutation into the biggest carrier of Europe. Thanks to Mr OLearys honed business skills, Ryanair managed to buy aircrafts at a ridiculously cheap price35. The deal went down in the history with Mr OLearys famous sentence we raped them to describe the contract outcomes. Subsequently, Ryanair revised the deal in 2003 and in 2005: this was the last deal with Boeing until this year. Early 2013, the airline announced it would buy 175 new Boeing36 despite ill media coverage regarding the safety of their battery and several incidents. According to Ryanairs official declarations, weve built a table regrouping known and projected aircraft receptions and disposals/leasing.

Leasing, selling, disposal: Ryanair resorts to a variety of mechanisms to lighten the price of its aircrafts, either by virtually dissociating them from its final result at the end of the year or by selling them to a third party (in total, Ryanair has sold about 50 planes since 2007). The airline is also known to wet-lease37 to other airlines (theres a permanent link on Ryanair.com regarding wet-leasing), although it remains a rare practice. On the other hand, the budget airline has often relied on JOLCO (Japanese Operating Leases with Call Options), which consists in a finance-lease of its aircrafts, in order to fund large acquisitions and revamp its fleets. However, Ryanair is likely to resort to JOLCO less and less as its durability has been questioned38 and since Ireland has eventually signed the Cape Town convention over airline insolvencies39, which is a more flexible lease agreement. Aircraft deprecation: Like any business asset, aircraft means money all the more so because they represent the most important fixed assets of an airline. Ryanair resorts to a unique method to calculate the depreciation price of its aircraft in order to keep its annual report pumped up40. Below, Air Scoop has built a breakdown of the difference between Ryanairs calculation policy and the ones practiced by all the other airlines41.

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Depreciating period: Depreciation depends on the cost of the asset and the useful life classification for it. Aircraft depreciation in the airline industry generally amounts to 16 years. At Ryanair, it somehow amounts to 23. Residual / Salvage value42: Estimated value of an asset after it has provided as much use to the owner as possible. In general aviation, it amounts to 15%; at Ryanair, it amounts to 20% for the five first years which is odd considering the airlines 25-mn turnaround time policy and extreme use of its planes.

By stretching the depreciation criteria to the maximum, Ryanair has managed to virtually save 330 million on its annual report, the Phoenix analyses43. Aircraft usage: make them fly more for cheap: Ryanair is never short of ideas to reduce costs, and this applies to every single aspect of its business model. Consequently, there are slight differences in aircraft usage compared to other companies, the main objective behind these practices being to reduce fuel-related costs and to increase flying time. Flying almost exclusively to small, secondary airports: For financial and punctuality reasons, Ryanair tends to choose small, secondary airports over large, saturated hubs. Indeed, small airports taxes are globally cheaper and the airline sometimes benefits from financial counterparts44. Additionally, Ryanair can also achieve alleged excellent punctuality figures when flying to less congested airports. Time-wise, the advantage is, in actual fact, double: Ryanair can fancy a more dedicated maintenance, ground team and, in the meantime, meet its 25mn turnaround time. Flying with the lowest amount of fuel possible: A genuine bone of contention between Ryanair and the media, but also official bodies and governments45, the companys fuel policy left a deep dent in Ryanairs image as a safe airline. Despite Michael OLeary, CEOs affirmation, pilots did receive instructions to take less fuel in the past, as the internal memos revealed by the French newspaper Le Nouvel Observateur revealed46. Revelations of alleged anonymous Ryanair pilots47 on the TV had already mentioned the pressures exerted over the pilots in 2012. Before that, in our precedent Air Scoop report, we referred to similar information suggesting that Ryanair might have been saving fuel48. This point will be developed further on in this report. Flying more slowly to save fuel Fuel is Ryanairs obsession as it amounts to about 47% of its expenses, therefore driving it in a particularly tight fashion when it comes to oil variation. As the Ryanair Holding Plc. groups profits fell 21 per cent in the first quarter of 2013, the board decided to take measures. Therefore, Howard Millar, deputy chief executive, advanced the idea that Ryanairs pilots should fly more slowly to save fuel49. Although it hasnt been put to the test, Mr Millar believes this measure will only have slight impact on Ryanairs punctuality.

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Otherwise, Ryanair follows or pioneered practices that gradually became the norm in the airline industry such as: Relying to point-to-point flying50 to maximise flight time Having cabin cleaning performed by cabin crew Deplaning and boarding passengers through both doors of the plane Loading/unloading cargo in only one bay

3- Sending a maximum of passengers in the air

Ryanair has achieved an incredible performance by carrying almost 80 million passengers in 201251. This phenomenal success was obviously spurred by its appealing low fares, which attract passengers despite its unconventional methods to obtain cheap tickets. Besides, the airline brings constant modification to its aircraft structure and usage policy in order to carry as much passengers as possible and hone its unit cost advantage in the process.

Aircraft fitting: Ryanair has entirely streamlined the outfitting of its aircrafts in order to create a set design for the entirety of its fleet which allowed Ryanair to cram 189 passengers in the plane. Surprisingly, Michael OLeary announced that the new set of next-generation 737 MAX planes could possibly welcome 199 planes, a declaration which is yet to be backed up technically. Michael OLeary, CEO of Ryanair, has also expressed colourful plans to reduce space among its planes and generate extra money (payment for toilets, standing seats in the plane, etc.). Considering the extremely hypothetical nature of these changes, they will not be detailed here.

(How vertical seating would look like. Source: Ryanair.com) Aircraft grounding: if they are half empty, dont fly them! In 2011, Ryanair took the airline industry by surprise by grounding 80 planes despite booming profits52. Although the carrier had already grounded planes in the past53, this unprecedented scale was astonishing. Ever since, the airline seems to have made a habit of grounding its planes during winter schedules54, much like it did in 2013 this year following a dip in the booking of its tickets55.

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This specific mechanism is twofold: Although Ryanair hedges 90 pc of its fuel, the airline still remains extremely sensitive to crude variation: in 2013, fuel represented 45% of its operational costs. When the barrel price reaches skyrocketing height, Ryanair chooses to fly on the most productive routes only. Second, the aircraft grounding is only made possible thanks to the zero-hours contracts under which Ryanair personnel are employed. As they only get remuneration for the hours they spend flying, Ryanair doesnt have to pay them during the pilots and crew working on the immobilized planes. Although it is a win-win situation for Ryanair, it may generate social conflicts. Ryanair, its aircrafts and the environment: Michael OLeary has never been one to mince words when it comes to ecology. Therefore, the recent controversy which flared in 2013 regarding environment were easily fuelled by the precedent declaration of the flamboyant CEO. Indeed, a polemic has sparked about Ryanair and its negative impact on ecology. Whereas Ryanair claims to be the greenest airline according to a Brighter Planet Report published in 201156, another report from Carbon Market Data advocates that the company was the biggest CO2 producer in Europe57.

B To Maximise and Protect Its Revenues

1) Ancillary Revenues: The real cost of flying with Ryanair
Ryanairs ancillary revenues: how to add revenues to the airplane ticket
In modern aviation industry, ancillary revenues seem to be ancillary only by the name. A specialist of airline industry, IdeaWorksCompany, has published this year a report on these additional revenues.58 Over all, luggage fees, change and other charges helped the airlines in the world to attain about $27.1 billion. Ryanair isnt the only carrier to resort to ancillaries to pump its profits, however it amounts for a significant part of its income Ryanair is the biggest ancillary-friendly carrier in Europe59. Ancillary: in addition to something else, but not as important (Oxford Dictionary) At first, ancillary revenues represented a chance for the customers to benefit from tailored flights and lower ticket prices. However, it soon became a plague for the passengers as they multiplied and prevented them from having a clear view on what they were paying60. As for Ryanair, it has been repeatedly increasing its ancillary revenues which now amount to 22% of its profits. The cost for passengers taking luggage in the hold has known such a drastic increase that it sometimes costs less to transport them by courier than actually fly with them, according to a recent Which! research61.

An introduction to the yield management and the multifarious price structure

The base price of a Ryanair ticket radically differs from a major airlines due to several external factors. Structurally, the LCC prefers a simple price ticket based on point-to-point, to avoid the traditional IATA system used by majors, which relies on a hub-and-spoke chain. 15

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Later on, to develop profitability, Ryanair like many LCCs resorts to a price-optimisation technique known as yield management or dynamic pricing62, which consists in mechanically adjusting ticket prices according to seats availability63. However, the lack of control on this inflating price system can have terrible consequences: some argued it may have led to the doubling of Ryanairs ticket prices after the train accident of Santiago de Compostela in July64. Later on, Ryanair accused Rumbo, a travel agency, over this doubling of charge. As for the price structure, while Ryanair is often deemed the cheapest airline in Europe, the real cost of flying with the Irish carrier can vary according to multifarious factors. In the end, the prices can double, triple or quadruple thanks to compulsory charges, ticket-related services or ticket-related penalties

Hidden costs and controversy: are Ryanairs prices virtually cheaper than what they actually are?
Some public watchdogs condemned Ryanairs additional fares upon the basis that they held hidden costs. Italian65 and Dutch66 regulators respectively fined the airline for 370,000 and 400,000 for falling down to simplify complex ticket sales. For the two regulators, the European law was violated. As a whole, hidden costs and ancillary revenues have been looked down upon by the media67 and some experts for complicating the booking of tickets.

Ryanairs price structure at glance:

1 Variable amount fare: the base fare charges and advertises for a single trip. 2 Additional compulsory charges: charges related directly to the ticket. Hardly avoidable, except in the case of an exceptional rebate or promotional offer. 3 Non-compulsory ticket related services: charges and expenses that most passengers will not avoid, as theyre directly linked with or part of the ticketbuying process. 4Ticket-related fees: penalties that passengers expose themselves to when failing to abide exactly to the complex rules of ticket buying.

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A detailed look into the three additional fares (Source: Ryanair.com):

All the fees displayed above are the fees one has to settle if one buys ones ticket online. In case the passenger shall pay from the Call Centre, every fee (except those included in Additional Compulsory Charges), will know a 10/15 increase, as well as the 20 fee necessary to call the Call Centre.

Ryanair.com: an unprecedented source of income?

There is a growing source of revenue for Ryanair which might become more and more central in Ryanairs ancillary strategy: its website. Ryanair.com was originally launched to slash in costs while charging a maximum any interaction with the call center. Always seeking to maintain its costs lower than low, Ryanair made the best out of its website despite an unadorned, cheap design this lowcost aspect contributes to conveying the image of a no-frill airline. However, change on its way. Ryanair signed this year a contract with the company Independent Digital68 for a targeting campaign of the 1.2 million users who visit Ryanair.com every day. Furthermore, Adara, a company specialized in data-driven marketing, also signed an exclusive partnership with the airline69. Much like Facebook, this partnership consists in providing to advertisers the data of the 1.2 million users of Ryanair. As for now, there is no way to determine which type of data will be exploited by other companies and if this arrangement will conform to Europes privacy regulation.

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Source: Ryanair, Annual Report 2013

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2) Tax optimization: Ryanair Holding, a jewel of fiscal engineering?

Once Ryanair has achieved tremendous success and financial profit, the next step of their success is protecting their revenue from taxes. Among all tax evading companies, Ryanair has a reputation, truth or not, of coming up with elaborate tricks to cut costs and maximise profits70. The most profitable of these tricks are largely hidden in the financial structure of the company. Getting more insight into Ryanairs actual financial structure has to be done the hard way, by looking into shareholders interest. However reconstituting this structure is not always easy; information and links established might not always seem obvious nor reliable. While some links between subsidiary companies and Ryanair are rather direct, by way of shareholding and direct investment, others are less visible. They can either be found through obvious interest links between two companies or hidden in a remote tax-haven. For these reasons, information provided here are presented with the confidence that they are true and up to date as of this writing, however they should not be taken as an exhaustive report of Ryanairs financial structure.

An overview of Ryanair financial structure

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Financial structure of Ryanair Holding and subsidiaries

The complexity of Ryanairs financial structure is actually hidden beneath Ryanair Holdings subsidiary, Ryanair Ltd. The company serves as a nexus point for the various investments and subsidiaries Ryanair possesses. Most of the subsidiaries appear to have been created with a particular purpose in mind, some of them obviously dedicated to reinvesting Ryanairs cash, or managing marketing subsidies or aircraft leases. Even in its financial structure, the company shows an impressive determination in minimising all possible expenses. Subsidiaries dedicated to aircraft leasing and financing have all been created on the Isle of Man, probably to make the most of advantageous fiscal conditions.

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Aircraft financing

Flexibility and separation: the advantages of Ryanairs fiscal model:

Thanks to the dissemination of its profits and the division of its structure into almost-homogenous compartments, Ryanair hits two birds with one stone: First, it achieves an incredible flexibility: the company can virtually close a base or shut down all or part of its businesses. Second, compartmenting allows a greater protection of its financial assets. In a legal lawsuit in Marseille, France, the State prosecutor has claimed the confiscation of the 4 planes of the Irish carrier. As Ryanair doesnt technically own its planes, but sells it to shell companies then leases them back, such a confiscation was legally impossible. The prosecutor had to demand, instead, a monetary compensation.

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3) A proactive and offensive legal attitude

Ryanair seems to systematically interpret the law to its advantage and this difference of understanding has led to several litigations71 for instance, in Marseille, France the understanding of the law is at the core of the case. For tickets, personals, airports, the pattern is the same and the company gets all the profits it can from the European and local legislations. When the carrier is proven wrong, it blames the law for being stupid or bizarre72 or threatens to stop servicing an airport73.

Fares:
Numerous cases of Ryanairs personal interpretation of fares have already led the European Commission or countries to lash at Ryanair. The same commission reminded Ryanair that according to article 5 of the e-commerce directive, an email address should be made available to customers on the company website. When asked about this breach of the European law, former Ryanairs spokesperson Stephen McNamara indicated that There is no email address for customers to contact us on, instead they can put it in writing or contact our reservation helpline. omitting to precise that the phone service had a cost (0.10 or 1.00 a minute respectively)74. So far, this situation remains unchanged. Boarding: On the other hand, the company is highly restrictive on the mandatory papers requested for boarding. Ryanair authorises only ID cards or passports. The company does not recognise legal documents which are otherwise allowed by the state. For instance, in Spain, children under 14 may travel if the family book is presented. Yet, the airline carrier does require an ID card or a passport and refuses boarding to children who are only identifiable thanks to a family book. This too tight an interpretation of the law created a genuine upheaval in Spain when Ryanair decided to deny access to a 2-year old for not having its ID. It was legally attacked by a consumer association and lost the case in June 201375.

Personnel:
Ryanair considers that its work contracts are valid under European law 593/2008 EC76 and 96/71/EC77. The former indicates that employees can be subject to contractual specifications in respect of the law of another member state. The latter relates to workers travelling temporarily abroad to ensure the provision of service. What Ryanair does not say is that 593/2008 EC indicates that employees should get the social benefits of the country in which they live and that 96/71/EC was made for construction workers who were working abroad for short periods of time In 2012, the European Commission acknowledged the gap in law which allowed airlines like Ryanair to hire their cabin crew under contestable contracts. It decided to update the law by including the concept of home base78 which specifies that an employee must benefit from the social coverage in the country where they are based. However, as airlines have up to 10 years to adapt to the new system, some countries have started taking legal actions against Ryanairs employment practices.

Airports:
Subsidies are legal in Europe but their use is strictly framed. As the company does not always meet these requirements and wants to spend as little as possible at airports, subsidies are sometimes branded under marketing aids or reduced fees.

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Ryanair demanded 600,000 for three years to maintain an all-year service of the Figari airport79. The local Chamber of Commerce created an association Ple des comptences ariennes Sud Corse" (Aviation Experts Association of South Corsica) whose goal is to buy advertising in airlines magazines and websites.

An offensive strategy: playing hard against everyone

Ryanair is notorious for its offensive strategy which consists in attacking everyone, whatever the institution or the identity of the attacked. In the past years, the airlines been involved in an impressive series of lawsuits, facing an even more impressive list of different actors: association of consumers 80, competitors81, institutions82, media, personnel83 Although Ryanair has lost a considerable number of cases84, the airline never ceased to threaten or sue. In actual fact, the carriers aggressiveness effectively managed to scare85 anyone that dares do harm to the company. Having proved that it didnt shy away from going to court, Ryanair frequently attempts to coerce the media into dancing to their tune. Such was the case for a Swedish newspaper which was threatened of legal actions if it were to publish an article which wasnt to its liking86. Such actions were viewed as censorship by the chief editor of the newspaper which heatedly replied. But Ryanairs aggressiveness can turn against them: in 2012, the airline attempted to silence the website AvHerald which is specialized into reporting plane accident or incident87. In response, the owner of

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the website revealed the intimidation attempt and it created such turmoil that Ryanair preferred to back away. Without a political action on what could be viewed as an attack against the freedom of speech, its quite unlikely that Ryanair will stop. Especially since this offensive policy has proved to work: the Belfast Telegraph, an Irish newspaper, apologized publicly after having been threatened of legal action by the Irish carrier88. This offense strategy expands as well to Air Scoop itself, which has been attacked and sued by the company for openly raising concerns on some aspect of the airlines business model, which prevented the publication of the 2012 edition.

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PART II: Ryanair business model in crisis

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A- Ryanairs sacred triptych flies on a wing and a prayer

In the precedent editions of this report, we supported the idea that Ryanairs success rested on three pillars: wily financial structure, a cheap-but-effective communication and a solid, offensive legal strategy. This sacred triptych seemed to have worked well for Ryanair for the past years. However, the profit warning that Ryanair had issued and which took by surprise most of the airline industry specialists demonstrated how fragile the supposedly unflinching growth of the Irish company could be. Nowadays, these three pillars are respectively under crisis, suffering the fire of critics all across Europe.

1- Ryanairs financial structure shakes on its feet

Ryanairs tax structure under scrutiny
Thanks to the complex mechanism described above, Ryanair has managed to conceal revenues in tax havens. This information, divulged by the work of a French reporter Enrico Porsia89, was a wake-up call for the French political class. Ever since, a French senator90 and two French M.P.91 have separately demanded that the Minister of Transport shed a new light on this matter. The CGT (a French union) required an investigation from the Parliament whereas the APNA (Association of French Aviation Professionals) wrote a letter to French President Franois Hollande requesting another investigation92. The motive of such an upheaval is twofold: Ryanair allegedly receives subsidies from some small regions in France and the money is sent to subsidiaries in tax havens (either the Isle of Man or the Jersey Islands). Feeding tax havens with public money is considered shocking by the French political class, who decided to tackle the problem once and for all. Unfortunately, in order to protect itself, Ryanair has decided to resort to trust companies to dissimulate this debatable source of revenue and its relationships to these subsidiaries. Despite all our effort, we could only find that Aviation Promotion (IOM) Ltd (Ryanairs subsidiary in Isle of Man, which notoriously received money from Montpellier before a change of name93) had a fixed annual report of 1.000.000 every year. Our research also helped us find that Ryanair resorted to the use of the subsidiary of the Royal Bank of Scotland (Jersey) and has an operational Zloty account94.

Ryanair and the politics: when the airline angers top officials
Given the particular context regarding tax optimization and tax evasion, Ryanair might be a collateral victim of the global arrangement on the matter. Although an effective answer to social optimization is yet to be found, the airlines image could obviously suffer from a polemic on the matter. However, the tense relations between Ryanair and politics go far beyond the topic of state aids. All across Europe, top officials, from Members of Parliament to Prime Ministers, have voiced their concerns, condemned the airline or warned that they will turned up the screw.

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Non-Exhaustive overview of political reaction:

Belgium: Belgian Minister of Transport Andr Antoine reacted to a blackmail of Ryanair, which chose to leave airports in case of tax rise. The Minister argued the airline should reconsider its position given that the Walloon region has invested over 1 billion euros in the two airports95. France: French Minister of Transport Frederic Cuvillier declared that he will ensure all airlines to respect French law96 and demanded clarifications to Ryanair following the broadcast of the Channel 4 documentary97. A French senator and a French Member of Parliament also demanded investigations in Ryanairs tax evasion system. Italy: An Italian Member of European Parliament has accused Ryanair of fiscal evasion. This was later followed by a formal accusation in Italy, which ended up with Ryanair yielding and paying taxes. Ireland: Irish party Fianna Fil wrote to the Irish Committee on Transport to seek an investigation into Ryanairs safety policy in order to dispel the doubts98. Lithuania: Lithuanian Transport Minister declared that he will not breach European law to offer subsidies and tax discounts to Ryanair99. Norway: Norwegian Prime Minister Jens Stoltenberg has called for a national boycott of Ryanair following the scandal of the slave contracts100. 27

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Spain: Spain is a fertile ground for Ryanair critics as M.P. from all political sides seems to have a grudge against the airline. From the Minister of Transport, Ana Pastor, who declared to be sick of Ryanairs attitude101, to every M.P. who felt conned by the airline, Spains become globally hostile towards Ryanair. This may explain why, along with rise of airports taxes, the Irish airline decided to slash 14%102 of its routes. U.K.: In May, 2013, the M.P. Luciana Berger raised in the House of Commons the case of Sophie Growcoot, flight attendant. She accused Ryanair of exploiting young people103.

2- Ryanairs communication: Be talked about, no matter how, a shortlived mantra

Ryanairs communication strategy has long been in accordance with its marketing positioning and at the opposite of what traditional carriers do. Conventional airlines base their communication on services and customer care; they highly invest in advertising and public relations expenses. Ryanairs model was traditionally based on cheapness104, provocation105 and buzz106. The flamboyant CEO, who went into history for his sense of provocation and controversial quotes107, will quickly change tunes depending on the subject. Although the motto remains the same, as long as it is an expense, decrease it, the airline is clearly struggling against its carefree DNA, for instance when the critics are aimed at its weak point, that is to say airline safety.

Polemic under conditions: Ryanairs weak points

On January 2013, the world discovered that Ryanair could only withstand polemic up to a point. Half a year after the infamous three Mayday calls of Valencia108, four anonymous pilots from the Ryanair Pilot Group (RPG) chose to disclose secrets on Ryanairs fuel policy which caused a Europe-wide mayhem. According to the four RPG members who spoke for the Dutch show KRO Reporter109 Ryanair has been playing with the lives of its customers because of its fuel policy and to the pressure exerted on its flight crew. Whereas the former triggered several fuel incidents (in Alicante, Valencia and Budapest), the latter has been heatedly debated upon, with pilots leaking information on their working conditions and blowing the whistle all across Europe. Although Ryanair was quick to deny, it wasnt quite in the clear as the topic seemed to have caught the interest of the media. Investigations led several newspapers to reveal exclusive information over the company some of them actually proving wrong Ryanairs claim that pilots faced no pressure when it comes to fuel saving; it also revealed the existence of a fuel league (an internal ranking where pilots are rated according to the amount of fuel they save the pilots who were too costly are sent a warning letter). On August 12th, following the report of the Spanish Aviation Authority over the Alicante and Valencia incidents, Channel 4 displayed another show on the topic called Secrets from the cockpit110. Before it was even released, Ryanair had already threatened the British channel and raised the spectre of a legal action. But the documentary was released anyhow, unleashing the wrath of the airline.

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As a response, not only did Ryanair condemned with upmost ferocity the documentary and sued Channel 4, but also extended the legal action to the Mirror group and the Associated Newspapers for defamation. Ryanair and Dispatches trade blows

Word Cloud based of Ryanairs statement following Dispatchess TV Show. Source: Ryanair.com

Ryanair has displayed how far it was ready to go to publicly defend its reputation. Its spark against Channel 4 / Dispatches will certainly go down in history of the company as the most violent they ever had. The airline went as far as publishing the letters exchanged between Robin Kiely and Dispatches111. An exchange which illustrates, if need be, the violence with which Ranair can react if the carrier feels threatened at all.

Ryanair and the Internet, a one-side love: Additionally, Ryanair also surprised the Internet community by suing a forum to obtain the information details of nine users, under the basis that they were damaging the reputation of Ryanair online112. The users would write on the website PPRuNe.org which was compelled into removing all the content which related to safety. This case was seen by the forum users as a way to censor their freedom of speech, but although the story made the headlines, there was no political reaction to it.

A slight change of culture: is Ryanair tired of being the ugly duckling?

Additionally to its hysteric and strict attitude when it comes to safety, Ryanair also seems to go for a change when it comes to communications. The arrival of a new spokesman and head of the communication, Robin Kiely, was supposed to usher a new era in terms of communication. The 29

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airline was to launch a series of media relations initiatives, including a dedicated media website113. Alas, a leopard cant change its spots. So far, Ryanairs new media relations initiatives consisted in privately contacting newspapers and trying to coerce them into changing things. Such was the case of the website Travel Mole and Telegraph Travel which were asked not to associate the term no frill with Ryanair, as the airline offers the same quality as other carriers114. This attention given to its image is new, especially since it expands to the Internet, blogging platforms and social networks115. However, the carrier made the choice not to position itself on social networks, as it doesnt want to have two more people just to sit on Facebook all day116.

3- Ryanair under legal action: these lawsuits that threaten the company
Ryanairs aggressive posture in court is well-known all across Europe. But things are changing as customers, personnel and public authority no longer shy away from suing the airline in return. This change of pattern carries significant changes and some lawsuits pose a genuine threat to Ryanair as they could settle precedents which may be synonyms to dangerous consequences for the company.

Ryanair vs. Alessandra Cocca: the beginning of a revolution?

In 2013, two Ryanair flight attendants based in Norway decided to file lawsuits over their working conditions and abrupt dismissals, with the support of the Norwegian union Parat117. The core of the litigation laid in the fact that Ryanair employed its staff under Irish law, allegedly because they work on Irish-registered aircraft that are legally defined as Irish territory a persistent argument advanced by the airline to avoid tougher labour laws in other European countries. According to the plaintiffs, the carrier breached Norwegian labour law and the contracts under which the attendants worked were slave contracts. As usual, Ryanairs contract described above (no sick leave, no social insurance in the base country) was harshly criticized. However, the impact on the population and the media was tremendous and unprecedented, reaching up top officials. Norwegian Prime Minister requested a national boycott of the Irish airline, condemning the working conditions in Ryanair. Michael OLeary had to go to Norwegian national television to defend the interests of the airline. From a legal aspect, in order for the trial to take place, the Moss District Court (a lower chamber in Norway) was to determine whether the case fell under Irish or Norwegian law. On June 26th, 2013, Moss District Court announced that Irish courts had jurisdiction over Norwegians. At that time, only one flight attendant, Ms Alessandra Cocca, chose to appeal in a higher court level, which concluded in August that the trial must take place in Norway. Although Ryanair can appeal to the Supreme Court (the airline has up to October, the 5th), Vegard Einan, the vice-president of Parat, claimed that an appeal would be advantageous for Ms Cocca as it would have greater impact across Europe. The Ryanair vs. Cocca case was unprecedented: before this, no cabin crew had dared suing the airline due to what is frequently described as a culture of fear118. Mrs Coccas example could inspire other cabin crew to go along the same path. Following the announcement of the Norwegian case, six cabin crew members decided to file lawsuits over their working conditions, in Belgium this time119. In any case, if the ruling favours the workers, Ryanair could witness an astounding rise of costs concerning thousands of employees. 30

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Ryanair state aids polemic: a Damocles sword?

In 2004, two years after a formal investigation at the Charleroi airport, the European Commission ordered Ryanair to repay funds from Belgian authorities as they were declared illegal state aids. In 2008, an appeal at the European court in the favour of Ryanair dismissed the Commission judgment. Ever since this judgment, Ryanair claims in the media that the European Court had proved that it never received state aids. Actually, the EU General Court annulled the decision over procedural flaw120: therefore, it is misleading to claim that the EU General Court confirmed that Ryanair never received subsidies. In actual fact, Ryanairs misfortunes over state aids took a turn for the worse when the EC decided to reopen the Charleroi case, with due respect to procedure this time. It also decided to expand it to 22 other airports, out of which 17 cases concern Ryanair. Although the results of the investigations were to be released in the first semester of 2013, recent evolutions have made it likely that the conclusions of the EC will be disclosed as late as early 2014. Two precedents could objectively lead into thinking that these results will not be favourable to Ryanair: The initial ruling of the EC in the Charleroi case was disadvantageous to Ryanair. It might be safe to believe that the European Commission will take a similar ruling for other airports as the Charleroi case was denounced by a mere procedural flaw. EU antitrust regulators declared it would enforce law so to curb state aids121 in the airport industry clearly aiming at Ryanairs practices. Joaquin Almunia, the antitrust chief, also declared that they aimed to ensure that taxpayers money is well-spent and goes where it is truly needed. This statement appears as a clear hint to Ryanairs business practices122. Supposing Ryanair were to reimburse the aids, the amount would be tremendous: an informal figure of 793 million of euros was advanced in the past123. Although it remains quite difficult to assess how relevant this estimate is, Ryanair would definitely bleed hundreds of millions in case it was to reimburse the financial support it received across Europe all over the years. Below, we have listed tables of Ryanairs financial support according to press releases, reports from official bodies, annual reports of Commerce Chambers; this data is displayed under four categories: Airports name Rounded up amount, in euros, of financial support received or demanded by Ryanair The sum per passenger required by Ryanair, if the deal requested it The period of time over which the deal extended The public authority which granted the financial support

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Spain124: The situation in Spain bears a noticeable resemblance to Frances with payment of subsidies by the chambers of commerce (Camara de Comercio) on public money. Yet the financing systems seem to be a little more complex. Even if there was no national investigation, information were revealed after some airports refused to pay for extra subsidies and when Ryanair decided to stop flying to these airports.

Portugal125

Italy126

Belgium127

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Malta129

Slovakia130

Aer Lingus case and its negative effects on Ryanairs revenue:

Timeline of Ryanairs attempt to take-over Aer Lingus:

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As Ryanair stated in its annual report, a sale of Aer Lingus could significantly damages the airline. For a long time, Ryanair has attempted to take control of her Irish counterpart successively. European Commission and Aer Lingus have always blocked or rejected any take-over attempt, the former due to the situation of monopoly it could trigger. Meanwhile, the U.K. Competition Commission, through the voice of the Office of Fair Trading, decided to investigate whether Ryanairs minority stake in Aer Lingus could constitute a factor of influence on the airline (see Timeline above). Ryanair had to struggle against two institutional bodies believing that its presence in Aer Lingus could lead to a monopoly, or influence. However, it was also demonstrated from the results of the CCs investigation that Ryanair prevented Aer Lingus from merging with another airline, which confirmed the belief that Ryanairs presence in Aer Lingus represented a distortion of competition. Although the LCC is set to appeal this decision, the chances of winning are thin131. Therefore, its a double-loss for Ryanair that will lose Aer Lingus, which was critical for its expansion strategy, and it may face the emergence of a greater rival, in case Aer Lingus successfully managed to merge with another airline.

B- Social, cost rise and safety: the pending threats on Ryanairs business model
1- Social issues: Ryanairs Achilles heel
Ryanair openly refuses negotiations with unions. This uncommon position for such a large company has proved to be useful for a moment. Since its emergence as a low-cost airline, Ryanair has effectively managed to silence the voices of its personnel, despite occasional leaks in the press and the media. Alas, the social discontent never ceased to grow and nowadays it can no longer be swept under the carpet. All across Europe, pilots and cabin crew have decided to release exclusive information on the airline in order to damage the company. Albeit expectable, this outcome now confronts Ryanair to a difficult situation where an open war has been declared with its personnel.

The deterioration of Ryanairs relationships with its personnel:

Ryanair has a sacred sentence which returns in each annual report: the airline considers its relations with its employees to be good. This persistent statement seems bizarre as they ignore what an outsiders look could view as a brewing revolution. Ryanairs traditional line of defence is that the plaintiffs who attack the company are either bitter former employees132, people pretending to be Ryanairs employees133 or Internet trolls134, whereas most of the former staff claimed they kept silent due to a culture of fear135 which held them under control. There was however one unique case of a Ryanair pilot who unequivocally condemned the companys work policy with face uncovered. This employee, former Captain John Goss, was shortly dismissed by the airline, only a couple of days after he blew the whistle on the working conditions inside the company on a British TV show. Nowadays, anonymous pilots or cabin crew are leaking exclusive information on the airlines functioning and safety breaches136 in several European countries (Sweden137, the U.K., France138). 34

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These whistle-blowers139 phenomenon may be the consequence of a lack of social discussions between management and the employees.

The emergence of Ryanair Pilot Group: a genuine thorn in the foot of the airline
Ryanairs most formidable opponent as for now comes from the insides. The Ryanair Pilot Group (RPG) is an anonymous association which claims to represent more than a half of the airlines pilots. Ever since its creation in 2012, the RPG has been the unofficial voice of the pilots of the Irish operator. It has resorted to various tools to widespread the information and opinion of the Ryanair pilots it claimed to represent, from their famous participation to the KRO reporter TV show to their internal surveys which revealed that 9 of 10 Ryanair pilots wished an investigation on the potential consequences of the companys working policies, which were deemed a source of stress and danger for the pilots and the passengers140.

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Ryanair Pilot Group or Non-Ryanair Pilot Group? One issue which is yet to be solved entirely is the question of the RPG real identity. The structure, which was created in September 2012, claimed it kept the lists of its pilots anonymous in order to protect them from legal actions and dismissals. Although the recent eviction of John Goss legitimates their point, Ryanair refuses to acknowledge the issues raised by the pilots. For the airline, the RPG is no more than a PR Front for pilot trade unions of Ryanairs competitor airlines141. These accusations were backed up by the fact that the interim council of the RPG was led by four non-Ryanair pilots142 - three European, one American. This eclectic formation certainly sheds uncertainty over the true nature of the RPG and one could understand Ryanairs claims. However, several moves from Ryanair personnel such as pilots wearing the logo of the RPG as a sign of peaceful protest143 - and the leaking of internal resources made it clear that the RPG do represent a certain amount of Ryanair pilots. However, until an official Council is elected, RPGs legitimacy shall remain contested.

2- The inflexible rise of costs: Ryanairs three biggest threats

As demonstrated above, Ryanairs business model is in crisis. The company however is perfectly aware of it: indeed, it warned in its annual report that it could face an unprecedented rise in its costs. In Air Scoops opinion, three main expenses may seriously endanger the airline.

Fuel expense, at the core of Ryanairs expenses

The Irish airline Ryanair has always been known for its drastic or original way to slash into fuel costs. However, despite its effort, fuel remains the most important cost it has to face so far: it amounts to about 45% of its operating expenses144. Of course, fuel cost affects every airline, low-cost and major alike. However, due to the importance covered by fuel expense, Ryanair operates with a tight margin which explains how its profits can vary suddenly throughout the fiscal year.

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Staff cost: the unstoppable rise of social charges

Staff costs are about to increase drastically in the coming years at Ryanair. As a result of an update of the EU regulation 883/2004, employers of the airline industry will be under the obligation to ensure that their employees can contribute to a social insurance, a retirement pension scheme and be employed under the labour law of their home base country. This update is an answer to what a French senator has defined as the emergence of a low-cost employee145, under the EU rule of detachment. As explained previously, Ryanair has made the best of such an advantageous legal gap. However, the airline fears that this social business model has come to an end. As it said itself, there can be no assurance that Ryanairs existing employee compensation arrangements may not be subject to change146. Although airlines have up to 10 years to revise the contract of their current employees, the law automatically applies for every new employee hired at Ryanair. Considering the high turnover rate of the airline, this situation may expose it to a sudden and surprising rise of labour costs. However, regarding the ambitious expansion plan the Irish carrier has presented in order to achieve Europe short-haul route mastery147, it seems that an increase of Ryanairs social costs is inevitable.

Airports related fees: the backlash of European austerity

The looming austerity context has caused the airports to ponder more thoughtfully whether they seek to offer financial support to airlines. Generally speaking, there has been an increase of the airports taxes in major touristic destinations such as France, in the U.K., or Spain. The Spanish case remains the most interesting however as it caused Ryanair to fly off the handle148. Ryanairs CEO claimed at the time that this increase would only result in less jobs created and would eventually impact Spains economy. However, this discourse has to be taken cautiously as theres no clear evidence that Ryanairs travellers created as much jobs as the airline claims. As a matter of fact, a Bipe / BVA study for the Languedoc-Roussillon region established that Ryanair travellers spend two times less than easyJets149.

3- Safety at Ryanair: a thorn in the foot?

Operationally speaking, Ryanairs in-flight safety policy is on par with all the other airlines. This assertion has been made by the IAA, independent observers150 and Ryanair itself, naturally. Nevertheless, the media and politics continue haunting the airline on events which happened one year ago. How to explain this strange discrepancy?

Madrid flights: an infamous precedent

At the core of the safety claims against Ryanair, there were the infamous incidents of Valencia where three planes issued May Day calls, a serious call in the aviation industry. Declaring fuel emergency constitutes an incident itself, which can be at the origin of an investigation. However, before the Valencia incidents, there have been numerous incidents151 which could be related to fuel emergencies. One May Day call in 2010 at Alicante resulted in a report of the CIAIAC152, the Spanish Aviation Authority. This report clearly questioned the safety policy of Ryanair, especially when it came to its fuel policy. It was afraid, among other things, that Ryanairs fuel policy could become a

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standard in the airline industry153, thus posing a genuine risk of crash of an airline all the more if May Day fuels were to be declared in congested airports. Despite both IAA and CIAIAC demanding Ryanair to change its fuel policy, the Irish carrier still demanded a priority landing due to lack of fuel in Budapest four months later 154, an incident which could have degenerated into another fuel emergency. This incident suggested that the airline didnt change its fuel policy at the time. In total, there were about four incidents due to fuel shortage in two years, which remains a high score even for the professions standards. The Madrid case left a durable, powerful impact in the press, the media and the peoples minds. The fact that Ryanair never acknowledged the fact that its fuel policy could have been at a time a factor of risks hardly helped. Mr OLearys insistence that the May Day calls were the results of standard procedures when they remain serious aviation incidents probably led into disbelief and lack of trust by the press.

Ryanair and its pilots: are the risks of human factors real?
Ryanair pilots, through the voice of the RPG, have made their concerns about their shying away from speaking up on safety155. According to them, the airline imposed a culture based on fear156, and the zero-hours contracts under which they operate do not allow them to voice their worries. Although Ryanair firmly denied these allegations, it is surprising that whenever a pilot dared speaking up openly, he was immediately dismissed. As John Goglia, a former member of the National Transportation Safety Board and a long-time accident investigator wrote in the magazine Forbes that this attitude could have a chilling effect on employees raising safety concerns157. Indeed, Ryanairs strict and aggressive attitude towards Captain John Goss left some professionals dumbfounded. John Goglia believed that a better reaction would have been to respond with the technical data to disprove the pilots claims. Somehow, the insistence of Ryanair to conceal this technical data raises some doubts over their sincerity, all the more so because the company, through the voice of the CEO, had already advanced facts which were untrue: for example, they claimed for a long time that Ryanair pilots never experienced pressure158 whereas leaked information from internal memos159 clearly proved otherwise. In those conditions, how to consider the risks of crash due to human factor advocated by the Ryanair Pilot Group? First, one has to bear in mind that a crash is the consequences of a combination of factors. Human factor are often at the centre of deadly accidents160. Fatigue, sickness, stress can result in poor decision making which ultimately leads to a crash: such was the case for the crashes of Aloha Airlines Flight 243 in Maui, United Airlines Flight 173 in Portland, Avianca Flight 52 one also has to consider that fuel shortage is a frequent cause of crashes in the airline industry: in a decade, five planes crashed due to lack of fuel. Besides, a debate is currently on-going in EU on a possible increase of the flight time limitation (FTL)161. During this debate, doctors and scientists all advocated the dangers of fatigue and stress162. Therefore, if bullying practices, stress and fatigue as a result of zero-hours contracts were to be confirmed by evidence, it would be definite than Ryanair puts passengers safety at risk. However, as pilots who testified remained anonymous, there can be no proof that Ryanair applies a pressure which could lead into a lethal accident. As for now, several incidents are being investigated, which might help determine whether Ryanair pilots stress or behaviour is imperilling or not163.

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About on-board safety: In 2011, indications of disregard of regulations on-board Ryanair planes have surfaced. It appears that some of Ryanairs Boeing 737-800 are flying without all their carts164, compromising the latching of carts stored in the galleys. It also appears that crews do not always use fire proof rubbish bags on carts and in the toilets, which could result in a potential fire hazard during a flight165. It is unclear whether these are occasional occurrences or the result of systematic costcutting on part of the airline.

Ryanair and the erasure of black box

Ryanair has made it clear that it refused any defamation on its safety policy: the airline went as far as suing a forum to obtain the private details of users who criticize their safety on forums166. However, this paranoia can lead the airline into taking drastic, controversial action. A recent report from the Swedish Accident Aviation Authority revealed that Ryanair went as far as deleting a black box167 after an incident, and notified the said incident to the Swedish Accident Investigation Authority four calendar days later. This attitude demonstrates an attempt to monitor and control anything safety-related which could be bad press for Ryanair, but also raise some questions about their sincerity and their transparency culture. Although the Accident Investigation Authority classified the landing as a serious incident168, Ryanairs spokesman Robin Kiely declared that their technical department did not consider it necessary to preserve the recording. A decision which isnt theirs to make?

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Towards a new era: the new face of the aviation industry

According to Buddha, Everything changes, nothing remains without change. When Ryanair made its first steps on the European market, with its new rules and creative posture, it revolutionized the airline industry. But nothing stays still and we may be on the brink of something different.

Nowadays, Ryanairs competitors have not only become effective, they also managed to do it without creating polemics. Prime Minister and official German Member of Parliament fly on easyJet. Vueling is the most liked company in Spain. Meanwhile, majors have decided to strike back by hybridizing: British Airways offered in September tickets for 10 with luggage fees. Ryanair is no longer alone. However, the airline, in order to fuel its skyrocket growth, made some detrimental sacrifices. As weve seen through this report, it arguably has one of the most controversial employment policies in Europe and is targeted by continual scandals and political upheaval. Its sacred triptych is challenged: it can no longer afford to have its reputation stained, its fiscal structure is being investigated and it is legally threatened by multiple actors even its punctuality is debated upon169!

In the meantime, public authorities, top officials, European Union have taken initiatives to prevent certain practices which used to be fundamental to Ryanair: working policy, state aids from secondary airports, rise of taxes

For the first time in two decades, Ryanair seems weakened. And yet, this downfall goes beyond the ultra-low-cost airline. It reflects the change that has been blowing over the whole European, shorthaul industry, which has now become more competitive than ever. Much like these major airlines CEO Michael OLeary despises, is it now the time for Ryanair to adapt or die?

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Ryanairs business model for 2013 AirScoop.com LLC Available in French: November 2013 http://www.air-scoop.com/

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References
http://airobserver.wordpress.com/2009/09/29/stelios-tackles-ryanair-at-the-word-low-cost-airline-congress/ https://pbs.twimg.com/media/BTJWnT9CAAAN62F.jpg:large 3 http://lexpansion.lexpress.fr/entreprise/que-vaut-ryanair-sans-les-subventions_249236.html 4 http://www.02b.com/es/notices/2013/06/easyjet_critica_las_subvenciones_directas_a_ryanair_6375.phpo http://www.farodevigo.es/gran-vigo/2013/07/20/xunta-asegura-sometera-gestionescomite/848292.html?utm_medium=rss http://www.anna.aero/2012/10/17/ryanair-veronas-second-biggest-carrier-withdraws-11-routes-withimmediate-effect/ http://europa.eu/rapid/press-release_IP-12-519_fr.htm http://www.elmundo.es/elmundo/2013/02/13/castillayleon/1360769333.html http://www.preferente.com/opinion/alvaro-alcocer/la-secreta-formula-de-ryanair-en-cifras-236760.html http://www.europapress.es/galego/noticia-caballero-insta-xunta-revisar-subvencion-ryanair-entrar-conflitosvigo-fomento-20120914165232.html 5 http://www.lufthansagroup.com/fileadmin/downloads/en/policy-brief/03_2010/LH-Policy-Brief-March-2010Ryanair.pdf 6 http://archive.maltatoday.com.mt/2010/04/04/t8.html 7 http://europa.eu/rapid/press-release_IP-04-157_fr.htm?locale=en 8 http://www.whichbudget.com/blog/en/opinion/405-low-cost-carriers-european-subsidies-alghero-airportcase-study http://lanuovasardegna.gelocal.it/regione/2009/10/22/news/la-sogeaal-e-senza-soldiaumento-di-capitale-invista-1.3316653 9 http://economico.sapo.pt/noticias/ryanair-quer-transportar-17-milhoes-de-passageiros-para-faro_85168.html 10 http://www.businessweek.com/articles/2013-07-05/eu-takes-aim-at-airport-subsidies-and-ryanair 11 See Part II of the report: 2013, a pivotal year for Ryanair? 12 http://noticias.companiaslowcost.com/20101221/compania-low-cost-ryanair-embolsa-80-millones-eurossubsidios-espana/ 13 http://www.02b.com/es/notices/2013/06/easyjet_critica_las_subvenciones_directas_a_ryanair_6375.php 14 Ibid. Part I.B- Turning costs into revenue : http://www.air-scoop.com/pdf/Ryanair-business-model_AirScoop_2011.pdf 15 Ryanair Full Annual Report 16 http://www.telegraph.co.uk/travel/travelnews/9420638/Ryanair-to-close-Spanish-routes-in-airport-taxrow.html 17 http://airobserver.wordpress.com/2013/07/18/belgium-ryanair-threatens-to-desert-charleroi-due-to-taxrise/ 18 http://greece.greekreporter.com/2013/04/26/ryanair-wants-lower-greek-airport-taxes/ 19 http://centreforaviation.com/analysis/ryanair-swot-analysis--michael-olearys-maniacal-focus-on-being-thelowest-cost-producer-96465 20 http://www.bloomberg.com/video/ryanair-planning-major-greece-expansion-ceo-saysekvRheOjTQuO_lfrfx2tyg.html 21 http://centreforaviation.com/analysis/european-airlines-labour-productivity-oxymoron-for-some-vuelingand-ryanair-excel-on-costs-97635 22 http://www.newsinenglish.no/2013/08/21/ryanair-loses-in-norwegian-court/ 23 http://www.dailymail.co.uk/news/article-2326003/Ryanair-air-hostess-blows-whistle-contract-staff-forcedmonths-unpaid-leave-buy-uniforms.html 24 http://www.lefigaro.fr/societes/2013/06/05/20005-20130605ARTFIG00586-l-ouvrage-choc-qui-derangeryanair.php 25 http://www.euronews.com/2013/04/12/ryanair-denies-slave-contracts-after-norway-crew-complaint/ 26 http://www.independent.co.uk/news/uk/home-news/join-ryanair-see-the-world-but-well-only-pay-you-fornine-months-a-year-8619897.html 27 AirScoop 2011: http://www.air-scoop.com/pdf/Ryanair-business-model_Air-Scoop_2011.pdf 28 http://www.ryanair.com/en/news/ryanair-announces-closure-of-marseille-base 29 http://www.theworkfoundation.com/Events/Key-facts-about-zero-hours-contracts 30 http://www.dailymail.co.uk/news/article-2389557/Ryanair-pilots-bullied-silence-safety-Two-thirds-saycomfortable-raising-fears-bosses.html
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http://www.rte.ie/news/2013/0729/465324-ryanair-pilots-employment-arrangements-criticised/ http://www.flightglobal.com/blogs/learmount/2013/05/pilot-mercenaries/ 33 http://www.independent.co.uk/news/uk/home-news/you-thought-ryanairs-attendants-had-it-bad-wait-tilyou-hear-about-their-pilots-8621681.html 34 Source: Ryanair.com 35 Air Scoop, Ryanairs business model in 2011 Part I.B- Turning costs into revenue : http://www.airscoop.com/pdf/Ryanair-business-model_Air-Scoop_2011.pdf 36 http://www.nytimes.com/2013/03/20/business/boeing-secures-15-6-billion-order-from-ryanair.html?_r=1& 37 https://en.wikipedia.org/wiki/Aircraft_lease 38 http://www.airfinancejournal.com/Article/3201947/Analysis-Airlines-return-Jolco-aircraft.html 39 http://www.ryanair.com/mt/news/ryanair-welcomes-irish-government-plan-to-amend-insolvency-laws 40 http://fr.scribd.com/doc/165957709/Time-for-O-Leary-to-Parachute-Out-of-Ryanair-September-2013-1 41 Some other budget airlines easyJet, Vueling have the same turnaround times than Ryanairs. 42 http://www.wisegeek.com/what-is-salvage-value.htm 43 http://fr.scribd.com/doc/165957709/Time-for-O-Leary-to-Parachute-Out-of-Ryanair-September-2013-1 44 http://www.businessweek.com/articles/2013-07-05/eu-takes-aim-at-airport-subsidies-and-ryanair 45 http://www.fomento.es/NR/rdonlyres/5B31C35A-EED0-4ABF-860BD4BD396F5B04/118469/2010_010_IN_FINAL_ENG.pdf 46 http://tempsreel.nouvelobs.com/economie/20130626.OBS4703/info-obs-la-securite-en-question-dans-lesavions-ryanair.html 47 http://cookies.publiekeomroep.nl/data/sites/kro.nl/?crrand=61296912 48 http://airobserver.wordpress.com/2009/11/18/spanish-pilots-complain-about-ryanair-fuel-saving-practices/ 49 http://www.express.co.uk/finance/city/418447/Ryanair-jets-go-slow-in-bid-to-cut-fuel-bill 50 http://en.wikipedia.org/wiki/Point-to-point_transit 51 http://www.businesspost.ie/#!story/Home/News/Ryanair+carries+almost+80+million+passengers+in+2012/i d/19410615-5218-50ea-cee6-cb9819496711 52 http://www.independent.co.uk/news/business/news/ryanair-set-to-ground-more-planes-as-fuel-costs-takeoff-2288261.html 53 http://www.supplymanagement.com/news/2012/ryanair-to-ground-planes-over-high-fuel-costs/ 54 http://www.supplymanagement.com/news/2012/ryanair-to-ground-planes-over-high-fuel-costs/ 55 http://www.bbc.co.uk/news/business-23956190 56 http://www.ryanair.com/fr/about/ryanair-and-the-environment 57 http://www.carbonmarketdata.com/cmd/publications/ETS%20Aviation%20Company%20Rankings%202012% 20-%2015%20July%202013.pdf 58 http://www.ideaworkscompany.com/wp-content/uploads/2013/06/Press-Release-78-Ancillary-Revenue-Top101.pdf 59 Ibid. 60 http://www.huffingtonpost.com/2013/05/31/airline-fees-complicate-price-comparisons_n_3364037.html 61 http://www.which.co.uk/news/2013/08/transport-your-luggage-by-courier-not-ryanair-says-which-331349/ 62 P. Malighetti, s. Paleari, R. Redonbi, Pricing strategies of low-cost airlines : The Ryanair case study , Journal of Air Transport Management, Vol. 15, 2009, pp. 195-203 63 Air Scoop, Ryanairs business model in 2011: http://www.air-scoop.com/pdf/Ryanair-business-model_AirScoop_2011.pdf 64 http://airobserver.wordpress.com/2013/07/29/santiago-de-compostela-ryanairs-ticket-price-doubled-afterthe-train-accident-unleashed-twitter-fury/ 65 http://www.reuters.com/article/2013/04/22/net-us-italy-ryanair-idUSBRE93L0YU20130422 66 http://uk.reuters.com/article/2013/03/20/uk-ryanair-fine-idUKBRE92J0O020130320 67 http://www.huffingtonpost.co.uk/2013/06/25/airline-charges-for-air-ticket-errors_n_3497774.html 68 http://www.independent.ie/business/irish/independent-digital-teams-up-with-ryanaircom-for-salespartnership-29270939.html 69 http://www.prnewswire.com/news-releases/adara-teams-up-with-ryanair-to-help-european-advertisersconnect-with-its-80m-customers-204456911.html 70 http://tempsreel.nouvelobs.com/economie/20130627.OBS4895/ryanair-les-subventions-s-evaporent-dansles-paradis-fiscaux.html 71 http://www.charentelibre.fr/2013/09/12/l-affaire-ryanair-rebondit-a-la-cour-d-appel-de-paris,1854741.php
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http://www.lefigaro.fr/societes/2013/05/31/20005-20130531ARTFIG00644-proces-ryanair-le-procureurreclame-la-confiscation-de-quatre-avions.php http://www.scotsman.com/business/management/ryanair-to-fight-bizarre-aer-lingus-order-1-3063453 http://www.ouest-france.fr/actu/actuLocale_-Ryanair-relance-ses-lignes-Nantes-Marseille-et-BrestMarseille_39382-1887059------29019-aud_actu.Htm http://www.newsinenglish.no/2013/07/16/ryanair-passes-authorities-test/ 74 http://www.thisismoney.co.uk/money/article-1366600/EU-orders-Ryanair-email-address-customerscomplain.html http://www.bloomberg.com/news/2011-03-16/eu-says-ryanair-needs-customer-e-mail-access-daily-mailreports.html 75 http://www.elmundo.es/elmundo/2013/07/12/valencia/1373637833.html 76 http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:177:0006:0016:EN:PDF 77 http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31996L0071:EN:HTML 78 http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2012:149:0004:0010:EN:PDF 79 http://www.air-journal.fr/2010-11-02-ryanair-suspend-les-vols-depuis-figari-vers-charleroi-et-londres514659.html 80 http://www.consumersinternational.org/our-members/member-activity/2011/06/spain-ryanair-tries-toblock-consumer-org-saying-it-'commits-abuses-and-fraud' 81 http://www.ryanair.com/es/novedades/ryanair-demanda-a-rumbo-por-acusaciones-difamatorias-enrelacion-a-una-reserva-inexistente-en-los-vuelos-desde-madrid-a-santiago p. 109 http://www.ryanair.com/doc/investor/2010/Annual_report_2010_web.pdf 82 p. 109 http://www.ryanair.com/doc/investor/2010/Annual_report_2010_web.pdf 83 http://www.nytimes.com/2013/08/16/business/global/ryanair-fires-pilot-who-questioned-airlines-safety-ontv.html?_r=0 84 http://www.bbc.co.uk/news/world-europe-21273666 http://www.bloomberg.com/news/2012-03-28/ryanair-loses-eu-court-challenge-over-alitalia-rescue-correct.html http://www.marketingmagazine.co.uk/article/1049680/ryanair-loses-boarding-pass-court-case http://www.pprune.org/rumours-news/234377-ryanair-loses-legal-bid-identify-website-critics.html http://www.itfglobal.org/campaigns/pilotswin.cfm http://www.tumbit.com/news/articles/5152-ryanair-lose-further-court-airbridge-decision.html 85 http://www.theguardian.com/media/2013/aug/14/ryanair-sues-channel-4-dispatches 86 http://www.thelocal.se/49752/20130821/ 87 http://avherald.com/h?article=45a1cb11 88 http://www.ryanair.com/en/news/ryanair-welcomes-belfast-telegraph-apology 89 http://verite-lowcost.com/ http://www.bakchich.info/societe/2013/04/21/levasion-fiscale-voyage-en-low-cost-62366 90 http://www.senat.fr/basile/visio.do?id=qSEQ130606907&idtable=q273421&_c=ryanair&rch=gs&de=2012091 1&au=20130911&dp=1+an&radio=dp&aff=sep&tri=p&off=0&afd=ppr&afd=ppl&afd=pjl&afd=cvn 91 http://questions.assemblee-nationale.fr/q14/14-36691QE.htm http://questions.assemblee-nationale.fr/q14/14-37655QE.htm 92 http://tempsreel.nouvelobs.com/economie/20130627.OBS4895/ryanair-les-subventions-s-evaporent-dansles-paradis-fiscaux.html 93 http://fr.wikipedia.org/wiki/A%C3%A9roport_de_Montpellier-M%C3%A9diterran%C3%A9e 94 Netherhall Ltd Annual Report, Netherhall Ltd Exceptional Decision, Aviation Promotion (IOM) Ltd Annual Report. 95 http://www.rtbf.be/info/regions/detail_budget-wallon-la-taxe-billets-d-avion-fait-tousser-l-aeroport-decharleroi?id=8049982 96 http://www.latribune.fr/entreprises-finance/services/transport-logistique/20130528trib000766964/ryanairdans-le-collimateur-du-gouvernement-francais.html 97 http://lexpansion.lexpress.fr/entreprise/securite-chez-ryanair-frederic-cuvillier-reclame-deseclaircissements_398704.html 98 http://www.rte.ie/news/2013/0825/470198-fianna-fail-ryanair/ 99 http://www.15min.lt/en/article/business/lithuanian-transport-ministry-says-ryanair-seeks-higher-discountsthan-rival-airlines-527-328984
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http://businessetc.thejournal.ie/norway-boycott-ryanair-oleary-slaves-867405-Apr2013/ http://www.elconfidencial.com/espana/2012/09/13/ana-pastor-esta-harta-de-la-chuleria-de-ryanair-yanuncia-mas-mano-dura-105340 102 http://lecercle.lesechos.fr/economie-societe/politique-eco-conjoncture/politiqueeconomique/221167383/politiques-espagnols-dechi 103 http://www.independent.co.uk/news/uk/home-news/join-ryanair-see-the-world-but-well-only-pay-you-fornine-months-a-year-8619897.html?origin=internalSearch 104 Ryanairs business model in 2011, Ryanairs communication: be talked about, no matter how : http://www.air-scoop.com/pdf/Ryanair-business-model_Air-Scoop_2011.pdf 105 Ibid 106 Ibid 107 http://www.telegraph.co.uk/travel/travelnews/9522319/Michael-OLearys-most-memorable-quotes.html 108 http://www.youtube.com/watch?v=ZoPVPap9dLA 109 https://www.youtube.com/watch?v=SIu295DWj94 110 http://www.dailymail.co.uk/video/news/video-1027991/Ryanair-Secrets-Cockpit-teaser-trailer.html 111 http://www.ryanair.com/en/news/ryanair-releases-channel-4-dispatches-letters 112 http://www.irishtimes.com/business/sectors/transport-and-tourism/ryanair-takes-nine-high-court-casesover-online-comments-1.1525277 113 http://www.prweek.com/news/1168050/ 114 http://www.telegraph.co.uk/travel/travelnews/10139204/Ryanair-with-or-without-thefrills.html#disqus_thread 115 http://www.independent.ie/business/irish/ryanair-in-bid-to-shut-down-pilots-twitter-and-facebookaccounts-29488060.html 116 http://businessetc.thejournal.ie/facebook-social-media-ryanair-robin-kiely-783104-Feb2013/ 117 http://www.newsinenglish.no/2013/04/10/ryanair-turbulence-lands-in-storting/ 118 http://www.businessworld.ie/livenews.htm?a=3053486 119 http://www.rtl.be/info/belgique/faitsdivers/1029473/hotesses-en-justice-contre-ryanair-tout-etait-a-nosfrais-du-parking-a-la-nourriture-a-bord-de-l-avion120 http://europa.eu/rapid/press-release_IP-12-265_en.htm 121 http://www.businessweek.com/articles/2013-07-05/eu-takes-aim-at-airport-subsidies-and-ryanair 122 http://www.bloomberg.com/news/2013-07-03/eu-to-curb-state-aid-for-airports-in-bid-to-bolstercompetition.html 123 http://www.lalibre.be/economie/libre-entreprise/les-subsides-publics-ont-sauve-ryanair51b8ecf9e4b0de6db9c70975 124 http://www.lavanguardia.com/20110727/54191763902/negociacion-conryanair.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+lavanguardia%2Falminu to+%28Lavanguardia.com+-+Al+minuto%29 http://www.expansion.com/muestra_foto_grande.html?foto=/imagenes/2010/12/21/empresastransporte/12 92886660_g_0.gif&alto=379&ancho=600&md5=db73f1ea0a87ae7f22f22568a36da7cf http://www.theolivepress.es/spain-news/2011/02/14/granada-say-no-to-ryanair/ http://www.granadahoy.com/article/granada/645792/quotlo/ha/hecho/ryanair/es/chantajear/las/institucione s/y/empresarios/la/ciudadquot.html http://www.hosteltur.com/fdb/191/lowcost.pdf http://www.travelweekly.co.uk/Articles/2010/04/01/33390/thomas-cook-threatens-canaries-cuts-overryanair-subsidy.html 125 http://economico.sapo.pt/noticias/ryanair-quer-transportar-17-milhoes-de-passageiros-parafaro_85168.html 126 http://www.whichbudget.com/blog/market-analysis/49-airlines/405-low-cost-carriers-european-subsidiesalghero-airport-case-study , http://lanuovasardegna.gelocal.it/dettaglio/la-sogeaal-senza-soldi-br-aumento-dicapitale-in-vista/1756426
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http://europa.eu/rapid/pressReleasesAction.do?reference=IP/04/157&format=HTML&aged=1&language=FR& guiLanguage=en 128 http://www.neurope.eu/articles/Ryanair-faces-new-subsidies-claim/42273.php http://presse.lufthansa.com/fileadmin/downloads/en/policy-brief/03_2010/LH-Policy-Brief-March-2010Ryanair.pdf

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AIR SCOOP

http://archive.maltatoday.com.mt/2010/04/04/t8.html http://www.eubusiness.com/news-eu/ireland-slovakia.2fr/ 131 Ryanairs seven-year itch: https://www.youtube.com/watch?v=239syEIZ800 132 http://www.independent.co.uk/news/uk/home-news/join-ryanair-see-the-world-but-well-only-pay-you-fornine-months-a-year-8619897.html 133 http://www.ryanair.com/fr/nouvelles/ryanair-statement-on-so-called-pilots-survey 134 http://www.telegraph.co.uk/travel/10238417/Ryanair-hits-out-at-internet-trolls-in-war-of-words-withpilots.html 135 Ibid 136 http://www.miroirsocial.com/actualite/9106/ryanair-des-revelations-internes-et-des-proces-en-cascadepourraient-mettre-la-compagnie-a-genoux 137 http://www.thelocal.se/49752/20130821/ 138 http://www.lefigaro.fr/societes/2013/06/05/20005-20130605ARTFIG00586-l-ouvrage-choc-qui-derangeryanair.php 139 http://www.thetimes.co.uk/tto/business/industries/transport/article3843692.ece 140 http://www.irishtimes.com/business/economy/employment/ryanair-pilots-want-safety-inquiry-surveyshows-1.1491783 141 http://www.ryanair.com/fr/nouvelles/ryanair-statement-on-so-called-pilots-survey 142 http://www.deplacementspros.com/Les-pilotes-de-Ryanair-elisent-leur-premier-Conseil-executifinterimaire_a22311.html 143 http://www.miroirsocial.com/actualite/8781/des-pilotes-de-ryanair-arborent-le-logo-d-un-syndicat-pourprotester-contre-les-methodes-de-la-direction 144 Ryanairs 2013 Annual Report 145 http://www.senat.fr/notice-rapport/2012/r12-527-notice.html 146 Labor relations could expose the company to risk, Annual Report 2013, p.48 147 http://www.bloomberg.com/news/2013-05-12/ryanair-s-o-leary-targets-short-haul-supremacy-in-europeendgame.html 148 http://economia.elpais.com/economia/2013/05/16/actualidad/1368703704_305193.html 149 http://www.tourhebdo.com/actualites/detail/62779/retombees-economiques-les-clients-d-easyjetdepensent-deux-fois-plus-que-ceux-de-ryanair.html 150 http://www.flightglobal.com/blogs/learmount/2013/08/a-glimpse-of-ryanair-today/ 151 http://airobserver.wordpress.com/2009/11/18/spanish-pilots-complain-about-ryanair-fuel-saving-practices/ 152 http://www.fomento.es/NR/rdonlyres/5B31C35A-EED0-4ABF-860BD4BD396F5B04/118469/2010_010_IN_FINAL_ENG.pdf 153 http://www.europapress.es/turismo/transportes/aerolineas/noticia-ciaiac-teme-politica-combustibleryanair-convierta-practica-habitual-sector-20130723125436.html 154 http://lowcostaccidents.wordpress.com/2012/12/07/ryanair-budapest-2012/ 155 http://www.theguardian.com/business/2013/aug/12/ryanair-pilots-inquiry-safety-concerns 156 https://www.google.fr/search?q=ryanair+culture+of+fear&oq=ryanair+culture+of+fear&aqs=chrome..69i57j 0j69i60.2692j0&sourceid=chrome&ie=UTF-8 157 http://www.forbes.com/sites/johngoglia/2013/08/21/firing-a-pilot-for-raising-safety-concerns-ryanairshould-know-better/ 158 http://www.travelweekly.co.uk/articles/2012/08/17/41401/pilots+not+pressured+to+minimise+aircraft+fuel +levels+says+ryanair.html http://www.independent.ie/irish-news/oleary-rejects-bullying-claims-in-wake-of-fuel-mayday-calls26888468.html 159 http://tempsreel.nouvelobs.com/economie/20130626.OBS4703/info-obs-la-securite-en-question-dans-lesavions-ryanair.html 160 The Human Factor in Aircraft Incidents Antoni Andre Kepczynski 161 https://www.eurocockpit.be/pages/flight-time-limitations 162 See EASAs scientific study, Moebus Aviation study, Dr. P. Cabon, Dr. A. Gundel and Dr. M. Spencer separate studies). 163 http://www.express.co.uk/news/uk/384865/Ryanair-pilots-forgot-safety-procedures http://www.elmundotoday.com/2013/09/un-piloto-de-ryanair-aterriza-de-emergencia-porque-mola-mas/ 164 https://twitter.com/ryanairdontcare/status/374288557751291905 https://twitter.com/ryanairdontcare/status/374288557751291905
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AIR SCOOP

https://twitter.com/ryanairdontcare/status/374480540008583168 https://twitter.com/ryanairdontcare/status/374480664038363137 https://twitter.com/ryanairdontcare/status/374480935485308928 https://twitter.com/ryanairdontcare/status/374481068637696001 https://twitter.com/ryanairdontcare/status/374481219548762113 https://twitter.com/ryanairdontcare/status/374481395524968448 https://twitter.com/ryanairdontcare/status/374481509568098304 165 Ibid 166 http://www.irishtimes.com/business/sectors/transport-and-tourism/ryanair-clips-wings-of-online-critics1.1524279 167 http://www.havkom.se/virtupload/reports/RL2012_20.pdf 168 http://www.thelocal.se/49698/20130817/ 169 http://www.bbc.co.uk/news/magazine-22659822

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